All Forum Posts by: Alexia McIntyre

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*This link comes directly from our calculators, based on information input by the member who posted.

Hello everyone! 

I am evaluating this property as a potential house hack. The home has a basement, which, with some work, can be a 2 bedroom one bathroom unit. It will need a kitchen/kitchenette, and the current entrance is through the garage. The rent for the 2/1 is what I used for the calculator. That means the -ve cash flow will be my housing costs. 

Caveats:

It was built in 1977. The inspection revealed moisture issues in the basement, a fastener issue on the deck, and reverse polarity of some of the outlets.

We are pending lead, mold, and chimney inspections.

The HVAC, furnace, and water heater are functional but "beyond their lifespan."

Due diligence ends on Tuesday, and the seller has indicated no negotiation or repairs will be made.

I have a walkthrough with my contractor on Sunday, but I'm trying to determine whether what I know is enough to decide whether to purchase or withdraw from the deal.

Hi everyone! 

My basement 2/1 is almost ready! I'm looking for a property manager who can help me get it up and running. Hopefully in the next couple months the upstairs 3/2 will be ready and can be added. 

It's not an official duplex but I think I can get A/B unit designation for mail. Zip code 30214. 

Also open to short, midterm, or long term rental.

Quote from @Tim Johnson:

@Alexia McIntyre  Welcome... your question is a bit broad for this forum. "How can I become financially free using rental properties?" is sort of what this whole BP is about. Offering some specific data on your situation...and some first steps you're thinking about allow forum readers to jump in with advice or suggestions.

Are you employed? Can you get conventional loans easily? What kind of rental properties are you interested in? How much time can you commit? How much capital are you starting with? Why are you limited to just 8 years? All of these would be hints for us in knowing how to help or what to suggest.

 Thanks for the guidance!

I'm self employed as of this summer so no 1099 tax returns yet. I was able to get a 0 down conventional for my first house as an owner occupied loan so I figured conventional loans at higher down payments are within reach. I'm interested in multifamily properties and eventually syndicates when I become an accredited investor. I save between $5000-$10,000 a month depending on how aggressive I am about saving. I set the I year limit because I need to recertify for my career at that point but I don't want to. I want out. 

New investor just moving into my first property. It's a single family house that I am adding a basement unit to so that I can house hack. I'm trying to determine what my next move should be and when. 

My goal is to replace my income with cash flow from my rental portfolio and I need to complete this in the next 8 years. 

Problem is.... I don't know where to start. I'd appreciate suggestions for a plan or for resources that can help me plan.

Thank you for your time 

Quote from @Tim Herman:

@Alexia McIntyre the minimum to take out is the mortgage balance or you will have to come up with cash. You will need to get permits and that figures in the valuation of the property for taxes. Did you check what the assessed value of the property is? Certain areas reassess the property tax on a sale. If the tax is based on a 100k value and you pay 319k your taxes will jump the next year. Have you checked the zoning and made sure you can operate a triplex? How are you getting a zero down payment on initial purchase? Do you have the cash for the remodel? Has a contractor given you a bid for the basement.

 Thank you!!!! I didn't know about this. I'll get the answers for the tax questions, check the zoning on the triplex, and get the bids on the basement. I'm getting zero down because of my income. I have the cash for the remodel but I need to get a better estimate. We're still in the due diligence period. I'll redo the numbers.

Quote from @Tim Herman:

@Alexia McIntyre better look at your math. You will have an existing mortgage of 319k and your refi is 275k.  So to do that you need to bring 44k to the closing table plus closing costs on the refi. 50k to do 2 kitchenettes and two bathrooms and 2 entrances plus 2 egress windows seems impossible for the 2 studios. taxes seem low for 450k property.

I'll run it again. We called the county tax office to get the tax number. The basement currently has a finished 1 bedroom and they framed out another room. We'd need to do the 2nd unit in that space if possible. We'd need the kitchen, bathroom and the egress windows. How do you determine how much you need to take out at refi and do the taxes increase then too?

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*This link comes directly from our calculators, based on information input by the member who posted.

Hello!

This is going to be my first deal. We are planning on renovating the basement into two 1br or studio units. We'll live upstairs and pay ourselves "rent". If we late move out we can then rent upstairs. Unfortunately got caught up in the rising interest rates so we've chosen to go with a 7/6 ARM to get the 6.375% interest rate. I've run the calculator with the interest rate at the current rate but I think it will still break even if we get stuck in the ARM and can't refinance out. I don't plan on pulling the full 70% out when we refinance because we're living in it. Just enough to do the next deal whenever we're ready for it.

Is there anything I'm missing or haven't accounted for?